A recent study by Bank of America highlights the ongoing financial challenges facing Generation Z, with nearly half of 18 to 27-year-olds relying on parental support, according to findings released Wednesday.

The report, based on an Ipsos survey conducted in April and May, reveals that 46% of Gen Z respondents depend on financial assistance from their families. This reliance extends beyond college students, with 30% of non-students also receiving support.

Financial aid varies widely among recipients, with 32% receiving $1,000 or more per month, while 44% receive $500 or less. Contrary to lavish expenditures, these funds predominantly cover essential needs such as groceries, rent, utilities, and health insurance.

A notable trend highlighted in the report is the rise of "loud budgeting," popularized on platforms like TikTok. This practice involves openly discussing financial constraints with friends, enabling 38% of Gen Z to comfortably decline social activities due to financial limitations. Additionally, 63% report feeling no pressure from peers to overspend, reflecting a shift towards firmer financial boundaries compared to previous generations.

Despite these positive shifts in financial transparency, challenges persist. The study indicates that 57% of Gen Z lacks enough savings to cover three months of expenses, and only 18% have contributed to an emergency fund in the past year.

Holly O'Neill, President of Retail Banking at Bank of America, emphasized the importance of empowering Gen Z towards financial health and long-term goals amid rising living costs.

While Gen Z demonstrates resilience and disciplined spending habits, the report underscores the need for continued support and education to navigate financial challenges effectively.